Current crackdown on crypto by regulators is just the beginning: Lawyer
- Crypto lawyer Jesse Hynes has stated that the current crackdown on crypto by regulators is just the beginning.
- Hynes believes that the worst is yet to come, but it will ultimately be beneficial for investors and the industry.
Financial Regulators around the world are strictly monitoring the crypto industry following a year full of bankruptcies, exploits, and scandals.
The high-profile controversies associated with the crypto space is attracting the attention of policymakers, and not in a good way. While regulators have stepped up the scrutiny of this sector, crypto lawyer Jesse Hynes believes that the worst is yet to come.
A crackdown on crypto will ultimately benefit investors
Jesse Hynes, who leads web3 crowdfunding platform Seedstarter, took to Twitter on 12 April to share his take on the current regulatory landscape.
The pro-crypto lawyer believes that the current crackdown on crypto is just the beginning of what regulators have in mind. Hynes stated that the worst is yet to come and when it does, it will ultimately be what’s best for investors.
1/ People think the crackdown is here. It’s not yet. It’s coming though. And here’s the hottest take of them all: it will ultimately be what’s best for investors. The road there will be terrible and unnecessary.https://t.co/zSL692UBvR
— Jesse Hynes ? (@jesse_hynes) April 12, 2023
Hynes tweeted a report which revealed that the U.S. Securities and Exchange Commission (SEC) was hiring general attorneys for its crypto enforcement division’s Crypto Asset and Cyber Unit, in three different cities.
The move indicated the regulator’s intention to step up enforcement against crypto entities by initiating enforcement actions and litigations.
According to Hynes, the root cause of all the attention to crypto companies is their way of conducting business. The crypto lawyer pointed out that numerous crypto firms take advantage of their customers. They use phrases like “own” “earn” “community-run” and “decentralized” in an effort to raise funds.
However, at the end of the day, all of those firms prioritize their profits in the name of the ecosystem, making their actions appear as deceptive business practices.
“The system is so messed up and backwards that this will actually start out by hurting the people that they are supposed to protect. The more famous actors will be gone after rather than the worst actors.”
He believes that the path toward investor protection will be rough, but will eventually benefit the industry.